Three Reasons 3D Systems is Risky
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Yahoo Finance
- Declining Revenue: 3D Systems has experienced a 7.3% annual decline in sales over the past five years, indicating a lack of consistent demand and reflecting poor overall business quality, which may undermine investor confidence in future growth.
- Decreasing ROIC: Despite new investments, 3D Systems has seen a significant decline in its return on invested capital, suggesting limited profitable growth opportunities, which could hinder its ability to attract further investment and exacerbate financial challenges.
- Cash Flow Shortage Risk: The company burned through $70.46 million in cash over the past year, with its $90.73 million debt exceeding its $85.08 million cash balance, indicating potential dilution risks for shareholders that could negatively impact returns.
- Pessimistic Market Expectations: Although the stock price surged 93.5% to $3.56 per share in the last six months, the market generally anticipates future losses, reflecting a lack of confidence in the company's profitability and suggesting investors seek more attractive opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DDD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DDD
Wall Street analysts forecast DDD stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 3.450
Low
5.00
Averages
5.00
High
5.00
Current: 3.450
Low
5.00
Averages
5.00
High
5.00
About DDD
3D Systems Corporation provides comprehensive three-dimensional (3D) printing and digital manufacturing solutions, including 3D printers for plastics and metals, materials, software, and services, including maintenance, advanced manufacturing and applications engineering. The Company’s segments include Healthcare Solutions and Industrial Solutions. The Healthcare Solutions segment serves industry verticals, including dental, medical devices, personalized health services and regenerative medicine. The Industrial Solutions segment serves industry verticals, including aerospace, defense, transportation and general manufacturing. The Company architects solutions specific to customers’ needs through a combination of materials, hardware platforms, software, professional services and advanced manufacturing. It markets its products and services through subsidiaries in North America and South America, Europe and the Middle East and Asia Pacific and Oceania.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Reasons 3D Systems is Risky
- Declining Revenue: 3D Systems has experienced a 7.3% annual decline in sales over the past five years, indicating a lack of consistent demand and reflecting poor overall business quality, which may undermine investor confidence in future growth.
- Decreasing ROIC: Despite new investments, 3D Systems has seen a significant decline in its return on invested capital, suggesting limited profitable growth opportunities, which could hinder its ability to attract further investment and exacerbate financial challenges.
- Cash Flow Shortage Risk: The company burned through $70.46 million in cash over the past year, with its $90.73 million debt exceeding its $85.08 million cash balance, indicating potential dilution risks for shareholders that could negatively impact returns.
- Pessimistic Market Expectations: Although the stock price surged 93.5% to $3.56 per share in the last six months, the market generally anticipates future losses, reflecting a lack of confidence in the company's profitability and suggesting investors seek more attractive opportunities.
See More
Top Industrial Stocks by Short Interest Levels Under $2 Billion
- Highest Short Interest: Elong Power Holding (ELPW) leads with a short interest of 56.15%, indicating significant market skepticism about its future performance, which could impact its financing capabilities and stock price stability.
- Second Highest: Enviri (NVRI) follows closely with a short interest of 36.71%, reflecting investor concerns over its profitability and market outlook, potentially increasing liquidity risks.
- Lowest Short Interest: Quest Resource Holding Corporation (QRHC), Gencor Industries, Inc. (GENC), and Reitar Logtech Holdings Limited (RITR) each have a short interest of 0.51%, indicating higher market confidence in these companies, which may attract more investor interest.
- Market Dynamics: 3D Systems (DDD) and Richtech Robotics (RR) have short interests of 29.90% and 28.05%, respectively, suggesting considerable uncertainty in the market regarding these companies, which could affect their future financing and expansion plans.
See More
Mixed Stock Futures as Autodesk Partners with AWS
- Autodesk Strategic Partnership: Autodesk announced a strategic partnership with Amazon Web Services (AWS) to offer Fusion and Fusion Manage products through AWS Marketplace starting in Q2, simplifying procurement and billing processes for customers while enhancing cloud-based design and engineering workflows.
- 3D Systems Financing Challenge: 3D Systems priced an upsized public offering of 16.4 million shares at $3.05 each, raising approximately $50 million, but the stock plummeted 15%, indicating market concerns about its future outlook despite the successful financing.
- Broadcom Earnings Beat: Broadcom reported an adjusted EPS of $2.44 and revenue of $22.19 billion, both exceeding expectations, yet shares fell 12%, reflecting investors' overly optimistic expectations for future growth despite strong AI-driven revenue increases.
- CrowdStrike Positive Outlook: CrowdStrike's Q1 revenue rose 26% year-over-year to $1.39 billion, with an adjusted EPS of $1.10, and although shares dropped 10%, the company raised its FY2027 revenue and earnings guidance, highlighting strong demand for its cybersecurity platform.
See More
3D Systems Prices Upsized Public Offering at $3.05 per Share
- Offering Size: 3D Systems announced an upsized public offering of 16,393,443 shares at a price of $3.05 per share, raising approximately $50 million, indicating a strong capital market financing need for the company.
- Underwriter Options: All shares are being offered by 3D Systems, with underwriters granted a 30-day option to purchase an additional 2,459,016 shares, enhancing market liquidity for the stock.
- Market Reaction: The stock fell approximately 15% in extended trading, reflecting a negative market response to the offering, which may impact investor confidence.
- Future Outlook: Despite current challenges, 3D Systems expects over 20% growth in aerospace and defense sectors in 2026, guiding Q2 revenue between $93 million and $95 million, demonstrating the company's confidence in future growth.
See More
3D Systems Prices Upsized Public Offering at $3.05 per Share
- Offering Size: 3D Systems announced the pricing of an upsized public offering of 16,393,443 shares at $3.05 per share, aiming for gross proceeds of approximately $50 million, with the offering expected to close on June 5, 2026, reflecting the company's proactive financing strategy in the capital markets.
- Underwriter Arrangement: Needham & Company and Craig-Hallum are acting as joint book-running managers for the offering, indicating the company's professionalism and market credibility in selecting underwriters, which is likely to enhance investor confidence in its future growth.
- Additional Option: The company granted underwriters a 30-day option to purchase an additional 2,459,016 shares at the same price, providing flexibility for further financing and potentially increasing cash inflow if market demand remains strong.
- Registration Statement Validity: The registration statement related to this offering was declared effective by the SEC on May 27, 2026, ensuring transparency and legality in compliance, which helps to build investor trust.
See More
3D Systems Launches $40 Million Stock Offering
- Offering Launch: 3D Systems announced the commencement of a $40 million underwritten public offering of its common stock, indicating a proactive approach to capital markets.
- Over-Allotment Option: The company intends to grant underwriters a 30-day option to purchase up to an additional 15% of shares sold, aimed at addressing market demand fluctuations and enhancing issuance flexibility.
- Market Condition Impact: The offering is subject to market conditions and other factors, with 3D Systems cautioning investors that there is no assurance regarding the completion, size, or final terms of the offering, reflecting current market uncertainties.
- Growth Outlook: Despite market challenges, 3D Systems expects over 20% growth in its aerospace and defense segment by 2026, guiding Q2 revenue between $93 million and $95 million, showcasing the company's growth potential in specific sectors.
See More
Three Reasons 3D Systems is Risky
- Declining Revenue: 3D Systems has experienced a 7.3% annual decline in sales over the past five years, indicating a lack of consistent demand and reflecting poor overall business quality, which may undermine investor confidence in future growth.
- Decreasing ROIC: Despite new investments, 3D Systems has seen a significant decline in its return on invested capital, suggesting limited profitable growth opportunities, which could hinder its ability to attract further investment and exacerbate financial challenges.
- Cash Flow Shortage Risk: The company burned through $70.46 million in cash over the past year, with its $90.73 million debt exceeding its $85.08 million cash balance, indicating potential dilution risks for shareholders that could negatively impact returns.
- Pessimistic Market Expectations: Although the stock price surged 93.5% to $3.56 per share in the last six months, the market generally anticipates future losses, reflecting a lack of confidence in the company's profitability and suggesting investors seek more attractive opportunities.
See More
Top Industrial Stocks by Short Interest Levels Under $2 Billion
- Highest Short Interest: Elong Power Holding (ELPW) leads with a short interest of 56.15%, indicating significant market skepticism about its future performance, which could impact its financing capabilities and stock price stability.
- Second Highest: Enviri (NVRI) follows closely with a short interest of 36.71%, reflecting investor concerns over its profitability and market outlook, potentially increasing liquidity risks.
- Lowest Short Interest: Quest Resource Holding Corporation (QRHC), Gencor Industries, Inc. (GENC), and Reitar Logtech Holdings Limited (RITR) each have a short interest of 0.51%, indicating higher market confidence in these companies, which may attract more investor interest.
- Market Dynamics: 3D Systems (DDD) and Richtech Robotics (RR) have short interests of 29.90% and 28.05%, respectively, suggesting considerable uncertainty in the market regarding these companies, which could affect their future financing and expansion plans.
See More
Mixed Stock Futures as Autodesk Partners with AWS
- Autodesk Strategic Partnership: Autodesk announced a strategic partnership with Amazon Web Services (AWS) to offer Fusion and Fusion Manage products through AWS Marketplace starting in Q2, simplifying procurement and billing processes for customers while enhancing cloud-based design and engineering workflows.
- 3D Systems Financing Challenge: 3D Systems priced an upsized public offering of 16.4 million shares at $3.05 each, raising approximately $50 million, but the stock plummeted 15%, indicating market concerns about its future outlook despite the successful financing.
- Broadcom Earnings Beat: Broadcom reported an adjusted EPS of $2.44 and revenue of $22.19 billion, both exceeding expectations, yet shares fell 12%, reflecting investors' overly optimistic expectations for future growth despite strong AI-driven revenue increases.
- CrowdStrike Positive Outlook: CrowdStrike's Q1 revenue rose 26% year-over-year to $1.39 billion, with an adjusted EPS of $1.10, and although shares dropped 10%, the company raised its FY2027 revenue and earnings guidance, highlighting strong demand for its cybersecurity platform.
See More
3D Systems Prices Upsized Public Offering at $3.05 per Share
- Offering Size: 3D Systems announced an upsized public offering of 16,393,443 shares at a price of $3.05 per share, raising approximately $50 million, indicating a strong capital market financing need for the company.
- Underwriter Options: All shares are being offered by 3D Systems, with underwriters granted a 30-day option to purchase an additional 2,459,016 shares, enhancing market liquidity for the stock.
- Market Reaction: The stock fell approximately 15% in extended trading, reflecting a negative market response to the offering, which may impact investor confidence.
- Future Outlook: Despite current challenges, 3D Systems expects over 20% growth in aerospace and defense sectors in 2026, guiding Q2 revenue between $93 million and $95 million, demonstrating the company's confidence in future growth.
See More
3D Systems Prices Upsized Public Offering at $3.05 per Share
- Offering Size: 3D Systems announced the pricing of an upsized public offering of 16,393,443 shares at $3.05 per share, aiming for gross proceeds of approximately $50 million, with the offering expected to close on June 5, 2026, reflecting the company's proactive financing strategy in the capital markets.
- Underwriter Arrangement: Needham & Company and Craig-Hallum are acting as joint book-running managers for the offering, indicating the company's professionalism and market credibility in selecting underwriters, which is likely to enhance investor confidence in its future growth.
- Additional Option: The company granted underwriters a 30-day option to purchase an additional 2,459,016 shares at the same price, providing flexibility for further financing and potentially increasing cash inflow if market demand remains strong.
- Registration Statement Validity: The registration statement related to this offering was declared effective by the SEC on May 27, 2026, ensuring transparency and legality in compliance, which helps to build investor trust.
See More
3D Systems Launches $40 Million Stock Offering
- Offering Launch: 3D Systems announced the commencement of a $40 million underwritten public offering of its common stock, indicating a proactive approach to capital markets.
- Over-Allotment Option: The company intends to grant underwriters a 30-day option to purchase up to an additional 15% of shares sold, aimed at addressing market demand fluctuations and enhancing issuance flexibility.
- Market Condition Impact: The offering is subject to market conditions and other factors, with 3D Systems cautioning investors that there is no assurance regarding the completion, size, or final terms of the offering, reflecting current market uncertainties.
- Growth Outlook: Despite market challenges, 3D Systems expects over 20% growth in its aerospace and defense segment by 2026, guiding Q2 revenue between $93 million and $95 million, showcasing the company's growth potential in specific sectors.
See More
